Residency Programmes and Malta Citizenship

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Residence Programmes and Malta Citizenship - Kresse Law

Malta Residency

EU island in the sun – Special Tax Schemes

Malta offers not only ordinary, temporary and permanent residence
but also Special Tax Schemes, such as the Residence Programme,
Rules for Highly Qualified Persons, a specific Retirement Programme
and for third country nationals the Global Residence and Residence
& Visa Programmes. An Individual Investor Programme caters for
Malta Citizenship. We will guide you find the most advantageous
alternative for your needs.

Residency Malta & Relocation

We at Kresse International take care about your needs concerning any kind of Malta residency requirements.

Malta Residence Regulations

In terms of residency requirements in Malta, two categories of applicants are to be differentiated, namely nationals of:

EU Nationals from the European Union and the European Economic Area (EEA), including Iceland, Norway, Lichtenstein, Switzerland
Third Country Nationals

A. Residence permits for EU/EEA nationals

Any EU and EEA or third country national residing in Malta for a period of more than 3 months is required to obtain a permit from the authorities in Malta for an "ordinary residence".

The following six different options have to be differentiated:

Anyone can take up their residence in Malta. This is possible on grounds of the following:

Employment
Self-employment in Malta
Economic self-sufficiency
Family member

1. Employment

Although EU nationals do not need a work permit to work in Malta, it is necessary to provide proof of residence by a "residence card". For this purpose, an employment form ("ETC- Engagement Form") filled out by the employer is regularly required.

2. Self-employment

EU nationals who are self-employed in Malta must attach additional supporting documents such as tax registration, a VAT identification number and, where appropriate, a trading licence to their application. A business address is also required.

3. Economic self-sufficiency

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Receive stable income in order to provide for themselves and their dependants and not resort to support form Maltese government

Minimal annual income of EUR 14,000 for single persons
Minimal annual income of EUR 23,300 for married couples
EUR 2.400 for every dependant

Provide a health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company (international health insurance is needed in the English language)
Be in possession of a valid travel document

4. The Residence Programme 2014

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Qualifying property holding: purchase of an immovable property at a consideration of not less than EUR 275,000 for a property situated in Malta (EUR 220,000 in the south of Malta or Gozo)
Alternatively, a property taken on a lease which is not less than EUR 9,600 per annum in Malta or EUR 8,750 per annum for a property situated in the south of Malta or Gozo
Pay an application fee of EUR 6,000 (EUR 5,500 in case of Gozo and south of Malta)
Receive stable and regular resources, sufficient to maintain themselves and any dependent person
Have health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company
Be able to adequately communicate in English or Maltese
Have a clean criminal record
Reside no longer than 183 days a year in any other jurisdiction
Be a fit and proper person
Be in possession of a valid travel document

Under this programme, a successful applicant would be subject to pay income tax at a rate of 15% on income arising outside of Malta and remitted to Malta. Any other income arising in Malta, not chargeable to tax under this programme, shall be charged as separate income at the rate of 35%. Any foreign sourced income not remitted to Malta would not be subject to Maltese tax. A minimum tax of EUR 15,000 a year would be required.

The applicant must be represented by an authorised registered mandatory in order to apply for this tax status.

5. The Malta Retirement Programme (MRP)

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Qualifying property holding: purchase of an immovable property at a consideration of not less than EUR 275,000 for a property situated in Malta (EUR 250,000 in Gozo or in the south of Malta)
Alternatively, a property taken on a lease which is not less than EUR 9,600 per annum in Malta or EUR 8,750 per annum for a property situated in the south of Malta or Gozo
Pay a non-refundable administrative fee of EUR 2,500
Not be in an employment relationship
Receive a pension declared in Malta, which constitutes at least 75% of applicant’s chargeable income as proven by documentation
Have health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company
Reside no longer than 183 days a year in any other jurisdiction
Be in possession of a valid travel document
Be a fit and proper person
Not be domiciled in Malta and have no intention to establish their domicile in Malta in the 5 years following from the date of the application

Under this programme, a successful applicant would be subject to Maltese tax at the rate of 15% on any income received in Malta from foreign sources. A minimum of EUR 7,500 and EUR 500 for every dependant is to be paid annually
Household goods may be imported free of VAT and import duties. Furthermore, successful applicants may register a car provided they have owned the car for 24 months prior to bringing it to Malta. The car has to be brought to Malta within 12 months of taking up residence.
A successful applicant may hold a non-executive post on the board of a company resident in Malta or partake in activities related to any institution, trust or foundation of a public character and of any other similar organisation or body of persons, also of a public character, which is engaged in philanthropic, educational or research and development work in Malta.
Kresse International cooperates with several Maltese Authorised Registered Mandatories who have to file the application.

6. Family members

Applicants for the ordinary residents of Malta have the right to reunification with their family members. The term "family" includes spouses, children and grandchildren, their spouses, if they are younger than 21 years of age, as well as relatives in a straight ascending line (e.g. parents, grandparents) provided they are under maintenance.

7. Temporary residence for school and study purposes

The temporary residence is guaranteed for persons pursuing an education in Malta. This includes schooling (also at private schools) and studying at the College or the University of Malta.

8. Permanent residence

A permanent residence can be requested by nationals of the EU or the EEA and their family members as soon as they have lived continuously in Malta for a period of 5 years and have not stayed more than 6 months a year outside of Malta. Furthermore, it is necessary that the resident has been employed or self-employed during these 5 years, has studied in Malta or has financially provided for themselves on the basis of the economic self-sufficiency program.

9. Highly Qualified Persons

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Be employed by an eligible office (as specified by the law) in sectors such as aviation, financial services or gaming
Receive annual income of more than EUR 82,881 for the year 2017. Based on the current development, the following years are most likely to require higher income
Receive stable and regular resources, sufficient to maintain themselves and any dependent person without having to resort to support from Maltese social system
Prove that they possess the appropriate qualification and have at least 5 years of experience – either or both depending on the exact employment conditions
Not benefit from any other tax scheme in Malta
Not be domiciled in Malta
Have health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company
Be a fit and proper person
Be in possession of a valid travel document

Under this programme, a successful applicant would be subject to Maltese tax on the employment income at the rate of 15%. Any qualifying employment income over EUR 5,000,000 is not subject to tax.

Successful applicant may profit from the tax benefit for a 5-year period and may apply for a subsequent one-time extension of additional 5 years.

B. Residence permits for third-country nationals

1. Specific residence programmes

In 2013 Malta introduced the Global Residence Programme, followed by the Malta Residence & Visa Programme in 2015. These programmes present an opportunity for economically self-sufficient third-country nationals to invest in the Maltese market, reside in Malta and travel the Schengen area, visa free. While the concept of both programmes is by and large the same, they do differ in details and thus present different pros and cons depending on the applicant’s priorities.

Neither of the programmes is available to persons benefiting from other schemes, such as the High Net Worth Individuals - EU/EEA/Swiss Nationals Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity Rules or the Highly Qualified Persons Rules.

1.1 The Global Residence Programme (GRP)

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Qualifying property holding: purchase of an immovable property at a consideration of not less than EUR 275,000 for a property situated in Malta (EUR 220,000 in the south of Malta or Gozo)
Alternatively, a property taken on a lease which is not less than EUR 9,600 per annum in Malta or EUR 8,750 per annum for a property situated in the south of Malta or Gozo
Pay an application fee of EUR 6,000 (EUR 5,500 in case of Gozo and south of Malta)
Receive stable and regular resources, sufficient to maintain themselves and any dependent person
Have health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company
Be fluent in either English or Maltese
Have a clean criminal record
Reside no longer than 183 days a year in any other jurisdiction
Be a fit and proper person
Be in possession of a valid travel document

Under this programme, a third country national would be subject to pay income tax at a rate of 15% on income arising outside of Malta and remitted to Malta. Any other income arising in Malta, not chargeable to tax under this programme, shall be charged as separate income at the rate of 35%. Any foreign sourced income not remitted to Malta would not be subject to Maltese tax. A minimum tax of EUR 15,000 a year would be required.

The applicant must be represented by an authorised registered mandatory in order to apply for this tax status.

1.2 Malta Residence & Visa Programme (MRVP)

In order for a person to qualify under this programme, such person would be required to meet the following criteria:

Qualifying property holding: purchase of an immovable property at a consideration of not less than EUR 320,000 for a property situated in Malta (EUR 270,000 in Gozo or in the south of Malta)
Alternatively, a property taken on a lease which is not less than EUR 12,000 per annum in Malta or EUR 10,000 per annum for a property situated in the south of Malta or Gozo
Receive annual income of at least EUR 100,000 arising outside of Malta or the possession of capital of at least EUR 500,000
Commit to a 5-year long qualifying investment of at least EUR 250,000
Pay a contribution fee of EUR 30,000
Pay an application fee of EUR 5,500 (to be deducted from the contribution fee)
Have health insurance covering themselves and their dependants for all risks in the EU procured by a company licensed in Malta or by a reputable international health insurance company
Have a clean criminal record
Be a fit and proper person
Be in possession of a valid travel document

Under this programme, a third country national would be subject to Maltese tax on all income generated in Malta as well as foreign sourced income remitted to Malta. Capital gains made outside of Malta would not be subject to Maltese tax, regardless whether these were received in Malta or remitted to Malta. The exact taxation treatment would depend on the applicant’s domicile and residency.

2. Highly Qualified Persons

Non-EU individuals must meet the same criteria as EU applicants, with the same taxation policy applicable, as stated under A.9.
EEA and Swiss individuals may benefit from the tax benefit for a 5-year period and may once apply for an extension of additional 5 years. All other third country nationals may benefit from the programme for a 4-year period and may once apply for an extension of additional 4 years.

3. Other residence options

3.1 Employment

Under Maltese law a work permit is required for non-EU / EEA citizens to work in Malta. This is granted if certain criteria are met. For example, an extensive statement of the employer's need for planned employment in Malta (the so-called "labour market consideration" demonstrating that no EU citizen was available) and a proof of qualification or at least 3 years’ professional experience.

3.2 Self-employment

In order to pursue self-employment, a third-country national must meet at least one of the following criteria:

Make an investment of at least EUR 500,000 within 6 months from the date of issuance of the work permit. The investment must consist of property, plant and equipment and / or capital for business purposes. Lease agreements are not eligible
Be a highly qualified innovator with a sound business plan, which, within 18 months after the company was founded, provides for the hiring of at least three EU / EEA nationals
Sole representative of a foreign company (with a good reputation, established abroad for at least 3 years), who wants to set up a branch in Malta
Operate in the management of a project officially approved by Malta Enterprise and officially notified by the Employment and Training Corporation (ETC)

3.3 Shareholders / investors

In order to apply for a Malta residence permit, at least one of the following criteria must be fulfilled:

a total capital of at least EUR 500,000 paid by the applicant, which cannot be sold, shortened or transferred to third parties in the first 2 years after the issuance of the employment license;
An investment of at least EUR 500,000, consisting solely of property, plant and equipment, such as production facilities or machinery used for business purposes.